Exam 36: Partnerships and Limited Liability Partnerships

In winding up a general partnership, creditors are paid before partners receive their capital contributions.

Sabin and Tyler agree while talking on the phone to form a partner?ship. Their partnership agreement is legally binding

The death of a limited partner dissolves a limited partnership.

A limited liability partnership must be formed in compliance with state law.

Rick and Sandy are limited partners in Total Profit Enterprises, a limited part?ner?ship. To avoid personal liability for partnership obligations, they must not

In a limited liability partnership, a partner can be exempt from personal liability for partnership obligations.

Ron is a limited partner, and Steve is a general partner of Total Financial Management, a limited partnership. Steve manages the firm. Ron has some expertise in the area and be?lieves that he could do a better job than Steve at managing, but he abstains from becoming actively in?volved. Why might he choose to keep away from management activities?

For most purposes, the law recognizes a partnership as an aggregate of its members.

Fay is admitted to Global Associates, an existing partnership. A partnership debt incurred before the date of her admission comes due. Fay is

With a few exceptions, all of the rules that govern partnerships apply to limited liability partnerships.

A limited partner who gives a general partner ad?vice on matters relating to the management of the partnership cannot be liable as a general partner.

In most states, a general partner is jointly and severally liable for all partnership obligations.

Dunn and Etta are limited partners in Fancee Fashion Stores, a limited partner?ship. In terms of the firm's books, Dunn and Etta are entitled to

On a partner's dissociation, his or her right to participate in the management and conduct of the business terminates.

A partner's fiduciary duties may be waived or eliminated in the partnership agreement.

Tundi is a partner in YooHoo! Amusement, a new partnership. A YooHoo! debt comes due. Tundi is

In a limited partnership, the liability of a general partner is limited to the amount of capital he or she has invested in the partnership.

A partner cannot "wrongfully" dissociate from a partnership.

Joint ownership of property in and of itself creates a partnership.

The Uniform Commercial Code governs the operation of partnerships.